Companies across industries are facing mounting pressure to measure, report, and reduce their greenhouse gas (GHG) emissions as climate change intensifies. Governments, investors, consumers, and other stakeholders now expect businesses to demonstrate environmental responsibility by disclosing their carbon footprint and implementing emissions reduction strategies. However, achieving accurate and reliable emissions accounting remains a significant challenge for many organizations.
Inconsistent data collection methods can lead to inaccurate reporting and undermine corporate sustainability efforts. Additionally, measuring Scope 3 emissions, which often constitute the bulk of a company’s carbon footprint, is a difficult task. Without a clear and accurate picture of their emissions, companies risk non-compliance with regulations and missed opportunities for efficiency improvements and cost savings. These best practices will help ensure that your emissions data is accurate, comprehensive, and aligned with global standards.
Emissions data accounting plays a critical role in a company’s sustainability strategy. Governments worldwide are implementing stricter climate policies, requiring companies to measure and report their emissions. Institutional investors and financial institutions increasingly consider climate risks when making investment decisions and companies with strong emissions reporting practices are more likely to attract ESG-conscious investors and secure funding. Beyond compliance with regulations, it serves as a foundation for climate risk management, corporate decision-making, and long-term sustainability.
Science-based targets ensure that a company’s decarbonization efforts are credible, measurable, and in line with global climate goals. Improving emissions data accounting is a crucial step toward long-term business resilience and sustainability. Companies that establish a transparent and precise emissions accounting framework can identify high-impact reduction strategies, gain a competitive edge, and build trust with stakeholders.
Before collecting emissions data, first define the boundaries of your carbon accounting. Determine which emissions sources to include in your inventory and classify them into Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (value chain) emissions. For many companies, Scope 3 emissions—which include emissions from suppliers, transportation, and product use—account for the majority of their carbon footprint. Establishing a clear boundary helps in prioritizing data collection efforts.
To ease defining boundaries and classifying emissions, use a globally recognized framework like the Greenhouse Gas Protocol (GHGP). This ensures that emissions data is comparable, verifiable, and aligned with stakeholder expectations.
Now that you have a clear understanding of the data you need to collect, it is time to set up your inventory and data collection processes.
The accuracy of emissions accounting depends on the quality of data collected. Whenever possible, use primary data—direct measurements or actual consumption data—rather than industry averages or secondary sources. For example, obtain actual meter readings or bills instead of estimating electricity usage. For companies with their own fleets, collect fuel consumption data directly from fleet records rather than using generalized emissions factors. Requesting emissions data from suppliers can also help refine Scope 3 calculations.
Manual data collection, however, increases the risk of errors and inefficiencies. Investing in digital tools can significantly improve data accuracy and streamline emissions accounting.
For many companies, Scope 3 emissions represent the largest share of their carbon footprint. However, collecting accurate Scope 3 data is one of the biggest challenges in emissions accounting.
This is where supplier engagement is needed. Encourage supplier transparency as it drives all parties towards sustainable development. Incorporating emissions reporting into procurement policies and requiring suppliers to disclose their GHG emissions as part of the vendor selection process eases data collection and fosters a culture of sustainability across the value chain.
Yet it is also good practice to ensure that your suppliers are equipped with the knowledge and resources to measure their own emissions as well. By providing training and resources on measuring greenhouse gas emissions, suppliers can better understand emissions accounting and reporting requirements and provide more accurate data.
Internal audits and third-party verification strengthen claims and accuracy. Regular internal audits can identify inconsistencies or errors in data collection and verify that emission factors and calculation methodologies are correctly applied. During this activity, anomalies in year-over-year data trends that may indicate reporting errors may be detected and resolved immediately before publishing the report. Make sure to cross-check emissions data against financial records and track data revisions to prevent outdated or incorrect figures from being reported. Benchmarking tools can also provide insights by comparing emissions performance against industry peers.
Independent third-party assurance also enhances stakeholder confidence and ensures compliance with regulatory requirements. While verification incurs additional costs, it increases the credibility of emissions reporting and improves investor confidence. Furthermore, certain regulations and reporting requirements may also begin to ask for third-party validation.
Emissions data should not exist only in a sustainability report—it should inform business strategy and drive sustainability initiatives. Improving emissions data accounting is essential for companies looking to enhance sustainability efforts, comply with evolving regulations, and meet stakeholder expectations. By adopting best practices, businesses can strengthen their climate strategies and position themselves as industry leaders in sustainability.
As regulatory requirements tighten and consumer expectations shift, companies that prioritize high-quality emissions accounting will gain a competitive edge in the low-carbon economy.
At Keslio, we are deeply passionate about measuring greenhouse gas emissions, having the expertise and extensive network needed to guide clients through their sustainability journey effectively and efficiently. Our expertise is particularly valuable for companies looking to embed sustainability practices into their businesses and investors looking to integrate ESG and impact into investment portfolios.
To learn more about how Keslio can assist your organization in its sustainability journey, reach out to us here or through hello@keslio.com
